Power REIT Expands In Colorado, Buys Property for Greenhouse Cannabis Cultivation

Power REIT PW, an infrastructure assets-focused real estate investment trust, has purchased a 2.11-acre property in Crowley County, Colorado.

The company, whose portfolio specializes in controlled environment agriculture, also owns parcels for renewable energy and transportation.

The deal was priced at $1.3 million. It also includes Power REIT's support of an 18,528 square-foot greenhouse and processing facility construction.

Furthermore, Power REIT — via a subsidiary — signed a 20-year triple-net lease with tenant Green Mile, which is set to run the cannabis cultivation facility. Under the lease, Green Mile is in charge of covering insurance, maintenance, and taxes-related costs, and it must hold on a medical marijuana license and run the facility following regional regulations.

The lease has specified an annual rent of around $252,000 standing for an unleveraged CORE FFO yield of 19.2% on the invested capital.

This deal raises Power REIT’s CORE FFO on a run rate basis by around $0.13 per share.

“This recent acquisition represents the latest iteration of an upgraded prototype greenhouse cultivation facility in Southern Colorado and supports our investment thesis of investing in sustainable greenhouse properties,” Power REIT Chair and CEO David Lesser stated. “We remain enthusiastic about expanding our greenhouse portfolio in Colorado, which should allow our tenant to compete favorably with indoor cultivation facilities by growing high quality cannabis at a competitive cost.”

Lesser also provided guidance on the company’s run rate CORE FFO to be $0.54 per share per quarter

“This represents 315% growth in a little over a year.”